According to aggregated portfolio data, the four most broadly held manufacturing companies are Apple Inc. (AAPL, Financial), PepsiCo Inc. (PEP, Financial), Coca-Cola Co. (KO, Financial) and PVH Corp. (PVH, Financial).
Institute of Supply Management reports strong growth in manufacturing sector for September
The Institute of Supply Management said in an Oct. 1 press release that economic activity in the manufacturing sector expanded in September, resulting in the 113th consecutive month of overall economy growth. Sectors that achieved growth during the month include textile manufacturing, rubber and plastics, consumer electronics, beverages, food production and apparel manufacturing.
GuruFocus’ new aggregated portfolio page allows you to select specific industries from multiple market sectors. For example, you can view the aggregated portfolio for the following nine industries as illustrated in Table 1.
| Apparel Manufacturing | Beverages – Brewers | Food Distribution |
| Rubber and Plastics | Beverages – Soft Drinks | Packaged Foods |
| Textile Manufacturing | Beverages – Wineries & Distilleries | Consumer Electronics |
Table 1: The nine industries considered for this article
Figure 1 shows a screen shot illustrating the “select sector” drop-down menu. You can select a specific sector by clicking on that sector in the light-blue section on the left. Please place a checkmark for each sector you wish to include in the aggregated portfolio. The numbers in parentheses indicate the number of selected industries for each sector.
Figure 1
Apple
Forty gurus own shares of Apple, including Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) CEO Warren Buffett (Trades, Portfolio). The combined weighting is 87.24%.
The Cupertino, California-based consumer electronics giant celebrated its new fiscal year with a new all-time intraday high of $233.34, which gives a market cap of approximately $1.13 trillion.
GuruFocus ranks Apple’s profitability 9 out of 10 on several positive investing signs, which include consistent revenue growth and a strong Piotroski F-score of 7. The Piotroski score is driven on several positive indicators, which include increasing return on assets, lower leverage and higher asset turnover year over year. Apple’s margins and returns are outperforming over 96% of global competitors, suggesting higher profitability compared to peers.
Other gurus with large positions in Apple include Ken Fisher (Trades, Portfolio), Spiros Segalas (Trades, Portfolio) and Jeremy Grantham (Trades, Portfolio).
PepsiCo
Twenty-five gurus own shares of PepsiCo with a combined weighting of 45.49%. Gurus with large holdings in PepsiCo include Pioneer Investments (Trades, Portfolio) and Yacktman Asset Management (Trades, Portfolio).
The Purchase, New York-based company said on Tuesday that on “the strength of [the company’s] year-to-date results” as of the third quarter, the company increased its full-year organic revenue growth outlook to at least 3%. Expected core earnings of $5.65 per share represent close to an 8% increase from last year’s earnings of $5.23 per share.
GuruFocus ranks PepsiCo’s business predictability two stars out of five, suggesting moderately consistent revenue and earnings growth over the past 10 years.
Coca-Cola
Eighteen gurus own shares of Coca-Cola, including Buffett and the Yacktman Fund (Trades, Portfolio). The combined weighting is 37.64%.
One of the largest nonalcoholic beverage companies in the world, Coca-Cola manufactures a variety of brands that include Fanta, Sprite, Minute Maid and Dasani. GuruFocus ranks Coca-Cola’s profitability 6 out of 10: even though revenues have declined approximately 7.50% per year over the past three years, a rate that underperforms 85% of global competitors, the company's operating margin is near a 10-year high of 29.89% and outperforms 89% of global soft drink companies.
PVH Corp.
Fourteen gurus own shares of PVH Corp., an apparel manufacturer known for brands like Tommy Hilfiger and Calvin Klein. The combined weighting is 7.14%; gurus with large holdings in PVH include Daniel Loeb (Trades, Portfolio), Leon Cooperman (Trades, Portfolio) and Louis Moore Bacon (Trades, Portfolio).
GuruFocus ranks PVH Corp.’s profitability 8 out of 10 and lists five positive investing signs, including consistent revenue growth and a strong Piotroski F-score of 8. The company’s business predictability ranks three stars out of five, suggesting consistent revenue and earnings growth over the past 10 years.
See also
Other most broadly held stocks within the manufacturing sector include Constellation Brands Inc. (STZ, Financial), JM Smucker Co. (SJM, Financial) and The Kraft Heinz Co. (KHC, Financial).
Disclosure: No positions.
